SGC and HP on logistics

Samsung General Chemicals (SGC) and Hyundai Petrochemical Co., are seeking to work together on purchasing raw materials and logistic work in order to save on costs and increase their efficiencies.

According to the petrochemical industry, as the Hyundai Petrochemical headquarters and factory neighbor on SGC’s, the two companies are thinking about collaborating together beyond the general cooperation happening in the Ulsan and Yeosoo areas.

They are in talks to find detailed ways to work together in active usage of the Port of Pyoungtaek as a stevedoring gate for raw materials, purchasing raw and subsidiary materials, and transportation.

Both sides are working together to find ways for true cooperation. Hyundai Petrochemical urgently needs to improve its sales results, especially as the Hyundai Group is looking to sell off the company at a profit. SGC also needs to save costs to improve profitability by 2004. The petrochemical companies are thinking that by working together they can both easily reach their own goals.

A source at SGC said that they are going to cooperate a little beyond those areas such as repairs and security just as other petrochemical factories have done. Hyundai Petrochemical also revealed a cautious attitude that there are so many problems to solve though they do agree in principle.